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Pour sugar and vinegar into a large saucepan, and stir to dissolve sugar. Add cinnamon sticks and cloves, and bring to a boil. Cover and boil for about 5 minutes. Strain out the cloves and cinnamon sticks, or you can leave them in for a stronger flavor.
Pack peaches into hot sterile 1 pint jars to within 1 inch of the rim. Fill each jar with syrup to within ½ inch from the top. Wipe rims with a clean dry cloth, and seal with new lids and screwbands. Process in a hot water bath for 10 minutes.